1. Howard has $60 per week to consume tacos and tortilla chips. He buys tacos and chips from the only store in his rural town, which charges $2 for a taco and $1 for chips. Howard only eats in combinations of 1 taco with 2 bags of chips.
   1. Using the utility-maximization model, graphically show a series of three indifference curves representing Howard’s preferences. (Explain any assumptions you make, and set up your model with tacos on the horizontal axis and chips on the vertical axis.)

2. Using the utility-maximization model, on a new graph, graphically show his optimal consumption bundle if he buys 15 tacos per week. Be sure to determine how many bags of chips he will consume.

3. On the same graph as (b), graphically show the income and substitution effects if the price of tacos increases.

4. Based on (c), explain how you know tacos and chips are normal or inferior goods.

Which of these items would be considered sexual harassment in the eyes of the law?

Which “type” of harassment is it:   Quid Pro Quo or Hostile Environment?  

1. A client pressures a salesperson for dates and sexual favors in exchange for a large purchase.

2. A supervisor requires that her assistant, a male, stay with her in her hotel room while they are out of town at a conference stating: “If you won’t agree to help me save expenses, I’ll find a new assistant who will.”

3. A male has asked two female co-workers to stop embarrassing him by telling jokes of a sexual nature and sharing their sexual fantasies, but they continue, telling him “you should appreciate the free advice!”

4. When she asked her co-workers to clean up their language, they no longer spoke directly to her but continued to use demeaning terms with each other, especially when referring to her within her earshot.

(1)A local entertainment establishment, in a small town, is trying to decide whether
it should increase its weekly advertising expenditure on a campus radio station. The
last six weeks of data on monthly revenue and radio advertising expenditure are
shown in the table below:
Week 1 2 3 4 5 6
Revenue ($000) 3.0 4.0 2.0 4.0 7.0 3.0
Advertising Expenditure ($00) 2.0 3.0 0.0 6.0 8.0 4.0
(a)Write a regression model that relates both variables in the “general” and
“specific” forms and briefly explain why the “specific” form is preferred.
(b) Estimate the parameters of the model and present your results in standard form.
Provide an interpretation of the results.
(c)Assume that in the following week #7, the firm planned to increase its advertising
expenditure to 9 (hundred) comment, briefly, on the expected impact of this new
spending on the firm’s total revenue according to this model.

BUSINESS LAW QUESTION

1. If Charlie is being accused of battery, could this be a criminal trial, a civil trial, or both?

Both

Neither
Civil
Criminal

2. Dave is starting a new company making high-end hoodies and needs to find distributors to move his product. He doesn't have any agreements with any distributors at the moment.

His brother Johnny hates Dave and wants to destroy his business, so he goes to all the distributors in town and offers them $5,000 if they refuse to enter into any contract with Dave.

Johnny has committed the tort of tortious interference with contract - true or false?

3. Which of these would be a defense to a claim of defamation, if the plaintiff were NOT a public figure?

a. The defendant believed they were telling the truth.

b. The defendant made the allegedly defamatory statement while they were testifying in a murder trial.

c. The defendant is not a public figure.

d. The defendant did not want to hurt the plaintiff's reputation.

Super Sneaker Company is evaluating two different materials, A and B, to be used to construct the soles of their new active shoe targeted to city high school students in Canada. While material B costs less than material A, the company suspects that mean wear for material B is greater than mean wear for material A. Two study designs were initially developed to test this suspicion. In both designs, Halifax was chosen as a representative city of the targeted market. In Study Design 1, 15 high school students were drawn at random from the Halifax School District database. After obtaining their shoe sizes, the company manufactured 15 pairs of shoes, each pair with one shoe having a sole constructed from material A and the other shoe, a sole constructed from material B.

After 3 months, the amount of wear in each shoe was recorded in standardized units as follows:

For this question, I would like help calculating the SA and SB - components of the test statistic - by hand. The SA I got was 1.7857x10^(-8), but I feel like that's incorrect.

Super Sneaker Company is evaluating two different materials, A and B, to be used to construct the soles of their new active shoe targeted to city high school students in Canada. While material B costs less than material A, the company suspects that mean wear for material B is greater than mean wear for material A. Two study designs were initially developed to test this suspicion. In both designs, Halifax was chosen as a representative city of the targeted market. In Study Design 1, 8 high school students were drawn at random from the Halifax School District database. After obtaining their shoe sizes, the company manufactured 8 pairs of shoes, each pair with one shoe having a sole constructed from material A and the other shoe, a sole constructed from material B.

After 3 months, the amount of wear in each shoe was recorded in standardized units as follows:

What is the 99% confidence interval for the difference in wear between material B and material A (use B-A)? Use software to get a more precise critical value, but confirm it's roughtly the same value you get from the table. Use at least 5 digits to the right of the decimal. Lower bound:  Upper bound:

Alternative hypothesis was: uA-uB < 0

Please Answer Question 2 Only

You have been contracted by the government of your country to provide recommendations on the regulation of the national textile industry. Currently, the textile industry which resembles features of the perfectly competitive market is completely unregulated. Using the concepts covered in the class, please provide your advice to the problems below.

1. One of the biggest social problems in the textile industry is child labour which, among other things, reduces school attendance. The government is considering two types of interventions and asked you to explain the process through which each of them affects the equilibrium amount of child labour and wages using words (explain the impact on demand and/or quantity demanded, supply, and/or quantity supplied as appropriate) and include well-labelled graphs.

a. Provide rewards for children who attend school [2pt]

b. Impose fines on employers who employ children [2pt]

2. Consider how own price elasticity of labour demand and supply affects the market outcomes for both policies. In addition to writing your answer in words, use well-labelled graphs to support your answer. Please draw new graphs, rather than using those from question 1.

a. How does own price elasticity of demand impact the effects of providing children who attend school with rewards on prices and the amount of child labour? [2pt]

b. How does the elasticity of supply impact the effectiveness of a fine on the employers who employ children? [2pt]

Please andwer only 2

You have been contracted by the government of your country to provide recommendations on the regulation of the national textile industry. Currently, the textile industry which resembles features of the perfectly competitive market is completely unregulated. Using the concepts covered in the class, please provide your advice to the problems below.

1. One of the biggest social problems in the textile industry is child labour which, among other things, reduces school attendance. The government is considering two types of interventions and asked you to explain the process through which each of them affects the equilibrium amount of child labour and wages using words (explain the impact on demand and/or quantity demanded, supply, and/or quantity supplied as appropriate) and include well-labelled graphs.

a. Provide rewards for children who attend school [2pt]

b. Impose fines on employers who employ children [2pt]

2. Consider how own price elasticity of labour demand and supply affects the market outcomes for both policies. In addition to writing your answer in words, use well-labelled graphs to support your answer. Please draw new graphs, rather than using those from question 1.

a. How does own price elasticity of demand impact the effects of providing children who attend school with rewards on prices and the amount of child labour? [2pt]

b. How does the elasticity of supply impact the effectiveness of a fine on the employers who employ children? [2pt]

1. Consider a wholesaler and a retailer selling designer handbags. Each has market power. The wholesaler sells designer handbags to the retailer, which then sells the handbags to consumers. The demand for handbags is captured by P = 24-Q. Assume that the marginal cost of producing a handbag is constant (MC=$8). Consider the following scenarios: a. Suppose that the retailer is the only firm and that it can produce the handbags it sells (there is no wholesaler here). How many handbags will be produced and what price will be charged? Draw a graph and show these points on the diagram. b. Now suppose that the retailer cannot produce handbags and must instead buy them from the wholesaler. The wholesaler charges the downstream firm $16 per handbag. How many handbags will the retailer purchase and sell, and what price will the retailer charge? 2. If the wholesaler and retailer in problem 1 merged, what would be the effect on overall social surplus?